Natural gas producer Range Resources Corp. will purchase Memorial Resource Development Corp. for a $3.3 billion all-stock deal. Shareholders will receive nearly 20% premium for each share held. Including debt, the total transaction is valued at $4.4 billion.
The merger brings more opportunity, adding to existing operations. Both companies have dealt with a stock roller coaster during the oil crises, with dropping gas prices amidst a time of oversupply.
Ranges CEO, Jeff Ventura, says these transaction add “to our cash flow, bolsters our credit profile and enhances the overall portfolio.” In addition to a unanimous decision of approval, a completion of the merger is expected no later than the end of 2016 pending shareholder and regulatory approval.
Article written by HEI contributor Marcela Abarca.